EUR/USD: the euro likely neutral on the forex in the short term (Commerzbank)

Commerzbank says that the EUR/USD will likely continue to stabilise on the forex, after testing the 55-day moving average at 1.1384.

"The EUR/USD broke through the resistance line at 1.1500 last week, but did not maintain the breakout, and is now more neutral. Downward declines should remain well supported by the 55-day moving average at 1.1384 and should be contained in the short term at the uptrend line at 1.1327. We are in favour of a resumption of the 1.1602/23 threshold, the 200-day moving average and the mid-October peak, and in the slightly longer term, we are targeting 1.1786, the 55-week moving average.

A break below 1.1267 would result in losses to the recent lows of 1.1216 and the 61.8% Fibonacci retracement of the 2017-18 hike to 1.1186. Please note that we continue to consider the recent low of 1.1216 as an intermediate low for the market."